Case Law Details
In re Dev Agro Tools Pvt Ltd (GST AAR Karnataka)
In a recent application to the Authority for Advance Ruling (AAR) Karnataka, Dev Agro Tools Pvt Ltd sought clarity on the GST exemption status of wooden handles manufactured by handicraft industries in Channapatna, Karnataka. The query pertained to whether these handles, used in their sickle production, qualify for GST exemption.
Dev Agro Tools Pvt Ltd, manufacturers of sickles classified under HSN Code 8201, emphasized that their product is exempt from GST. They sourced wooden handles, crucial components of their sickles, from Channapatna where most manufacturers are unregistered under GST. The company’s application for advance ruling aimed to confirm whether these wooden handles qualify for GST exemption under current regulations.
However, the application was withdrawn by Dev Agro Tools Pvt Ltd before a formal ruling was issued. This withdrawal suggests a change in circumstances or strategy by the applicant.
FULL TEXT OF THE ORDER OF AUTHORITY FOR ADVANCE RULING, KARNATAKA
ORDER UNDER SECTION 98(4) OF THE CGST ACT, 2017 & UNDER SECTION 98(4) OF THE KGST ACT, 2017
M/s. Dev Agro Tools Private Limited, No. 307, Ground Floor, A T Halli, 9th Cross, Shanthi Nagar, Bengaluru-560027 having GSTIN 29AAACD5853H1ZI have filed an application, online, for Advance Ruling under Section 97 of CGST Act, 2017 read with Rule 104 of CGST Rules, 2017 and Section 97 of KGST Act, 2017 read with Rule 104 of KGST Rules, 2017, in form GST ARA-01.
2. The Applicant stated that they are a Proprietary concern, manufacturers of “sickles”, a manually operated tool used by rural agricultural labours and farmers for harvesting cereal crops, classifiable under HSN Code 8201 and thus is exempted from GST. Further they purchase wooden handle, for their product sickle, manufactured out of waste wood/ fire wood, by the manufacturers in chennapattana, Karnataka, most of which are not registered under GST.
3. In view of the above, the applicant sought advance ruling in respect of the question “Whether ‘Wooden handle’ is exempted from GST which is manufactured by handi craft industries from Chanapattana, Karnataka?”
4. The applicant had not submitted the hard copies of the instant application and on enquiry they informed through e-mail dated 06.05.2024 that they intend to withdraw the application in the changed scenario and requested to permit them to withdraw the instant application.
5. In view of the above, we pass the following,
RULING
The application filed by the applicant for advance ruling is disposed off as withdrawn.
